Ikea is understood to be in advanced talks to buy land from developer Jim Kennedy's Jackson Way for a new store in south Dublin.
The Swedish furniture seller has been hunting for a suitable site on the capital's southside to add to its existing outlet in Ballymun, one of the chain's best-performing stores.
It is understood to be in discussions to buy part of the Jackson Way site in Carrickmines, Dublin, where land is currently worth close to €1.4 million an acre.
The talks are said to be focused on the final size of the site required, along with issues such as whether the Swedish group should make its purchase subject to the site getting planning permission.
Ikea’s Ballymun store occupies more than seven acres, along with space for about 1,500 cars.
The Scandinavian group already has a base in Carrickmines where customers can order furniture online and later collect it. The rate at which it is selling goods to people living in the area prompted Ikea to seek a site for a full-sized store.
Furniture merchant
The furniture merchant met Dún Laoghaire-Rathdown County Council chief executive Philomena Poole and planning director Mary Henchy last year to discuss the proposal.
One of the properties in which it was interested belonged to the council, but that was deemed more suitable for offices.
In 2014, An Bord Pleanála turned down Ikea's bid to change the council's master plan for Cherrywood to allow it open a store in the area.
The chain has since turned its attention to Carrickmines where the Jackson Way site became available in February following years of litigation.
Jackson Way won a High Court action over a €5.8 million claim against the company by Maireád Smith and her late husband Thomas Kevin Smith of Priorsland House, Carrickmines.
Compulsory purchase
Dún Laoghaire-Rathdown County Council compulsorily bought part of Jackson Way's property for €12.8 million in the 1990s as the M50 was routed through the area.
The Smiths believed that they were entitled to part of the purchase price on the basis of an agreement – known as a restrictive covenant – dating back to 1947.
In early 2014, the courts lifted an order originally obtained by the Criminal Assets Bureau in 2006 freezing Jackson Way's land and preventing its sale. Jackson Way subsequently claimed that the bureau had had no right to seek the order in the first place.
Ikea said this week there was no truth in reports it had bought land in Carrickmines. The furniture retailer added that it is always interested in expanding its Irish business, but was focused on plans for Cork, where it is said to be interested in building on a site in Carrigtwohill, to the east of the city.
